I am writing as an individual attorney who is interested in legal
services to the poor and want to raise my concern about the potential
unintended consequences to the Interest on Lawyers Trust Accounts (IOLTA)
program associated with your announced Temporary Liquidity Guarantee Program
(TLGP).

It is my understanding that under current TLGP implementation, the net
effect will be very strong pressures on attorneys in private practice to
move funds out of IOLTA accounts – pressures that would not exist if such
accounts were deemed non-interest bearing and/or fully insured. The
consequences of such an action would be serious.

Initially, and most importantly, the resulting flight from IOLTA accounts
would decimate many public service programs throughout the nation reliant on
IOLTA funds. As you may know, IOLTA funds provide a critical source of
revenue for a variety of programs throughout the country. These programs are
already strained in light of falling interest rates. Further strain would
harm the precise segments of our communities in the most need of assistance
– the aged, the poor, the disabled, the victims of domestic abuse, etc.

I urge the FDIC to consider IOLTA accounts as non-interest bearing
accounts under the terms of the TLGP. This position is supported by the
structure and purposes of the IOLTA program, as neither attorneys nor their
clients have any expectation of receiving any interest (all interest being
essentially donated for legal assistance purposes). If the FDIC cannot
consider IOLTA accounts to be non-interest bearing, I would ask that an
exception be made in the TLGP interim rules providing for unlimited deposit
insurance to IOLTA accounts.

We appreciate your consideration of our request on such short notice. I
would be happy to provide further information at any time.